One of the most important questions those new to the world of podcast production may have is in regards to finances. Specifically, how do podcasters earn their income? As simple as that sounds, the answer can actually come in various forms.

Monetizing one’s podcast is not just a singular process. In fact, there are many ways a podcast engineer or a podcast editor can make money due to how diverse the podcasting platform can be. The most successful shows utilize several strategies at once because, first and foremost, this happens to be the smartest move one can make.

For the purpose of safety, podcasters are often encouraged to diversify their revenue streams. It would not do, for example, to rely on just what you earn through YouTube. In this scenario, there is always the possibility that the platform no longer does well for you or it bans your podcast for whatever reason.

The two four ways podcasters earn income are through sponsorships, affiliate sales, premium content, and through complementary products. Let’s take the time to go over each one.

Method 1: Sponsorships

When it comes to the most common and most frequently cited way for podcasters to earn income, sponsorships are the way to go. Anyone who listens or watches podcasts would be familiar with this: at the start of the episode, the host usually shouts out a product or service. Sometimes, they plug those same products or services multiple times throughout the episode.

The earning potential from this depends on how many people listen or watch your show. Sponsors tend to pay on what’s called a “cost per mile” basis. The rates range from as little as $18 to as much as $50 CPM. The really popular podcasts, however, can be expected to go way beyond that range.

Method 2: Affiliate Sales

This method is similar to sponsorships. Rather than earning income per download, the podcaster gets paid based on what they are able to sell—and how much of it—for a separate company. 

For example, podcasters and YouTubers alike are known to take advantage of Audible’s affiliate program. Their fans can then use the special link they put out, which allows the podcaster or YouTube to get credit for any sale made through that. 

Method 3: Premium Content

Premium content is another great way for podcasters to get their audience’s direct support. The best thing is, there are many ways to do this. An example would be charging a fee for those willing to listen or watch an upcoming episode earlier than most. Another example would be providing bonus episodes or materials.

The versatility of this method is through the roof. However, you must also keep in mind that you must deliver on not just your promises, but also on their quality. No one would pay extra for material that does not interest them or falls short of their expectations of the quality. Therefore, extra effort often goes to the creation of premium content.

Method 4: Complementary Products

Similar to premium content is the selling of complementary products. These are not necessarily bonuses, but rather things like merchandise of your brand. If your podcast is informative or educational in nature, extra courses or books may do. Others even offer consultation, access to certain events, and more services.

Complementary products are best offered to audiences once your brand has grown to a certain level. Once you’ve reached that level, these products can be a way to sate the demand your audience may have about your brand that go beyond just your show. Many of sell complementary products utilize drop-shipping, print-on demand, and other services to make creating and sending orders easier.

These four methods are the most common, but the ways to earn income isn’t exclusive to them. As long as there are creative podcasters out there, one can always expect other streams of revenue to pop up. Some may stay unique and obscure. Others may blow up and influence the ways podcasters earn their income for years to come.

If the topic of how podcasters earn their income was an interesting and insightful read to you, then you may want to book a call with the good folks at Podcast Engineers to learn similarly awesome lessons! Get your free discovery call so that you can stay ahead of the curve today!